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Sustainable investing

Sustainable investing

Sustainable investing

The EU set out its landmark legislative plans to deliver carbon neutrality by 2050: yet another defining moment and a bold legal commitment.

In the last decade, various governments worldwide have enacted over 500 new measures to promote ESG issues. Given the magnitude of the task, various players are involved: governments, regulators, capital markets, businesses and consumers; and they are aided and abetted by green technologies and business model innovations.

ESG investing is not about jumping on the bandwagon; rather, it is about seeking to deliver financial and non-financial outcomes while managing the inherent risks.

Institutional investors were the original early advocates of sustainable investing, working initially with specialist asset managers. While some hedge funds were early adopters, the overall hedge fund industry's advance has been incremental thus far. This is now changing as:

  • their investors demand the adoption of ESG into the investment process;
  • the industry recognizes the potential for alpha generation through ESG factors
  • regulators force hands through new rules.

ESG should come with a story. It can’t just be about financial performance. It takes time, patience and skill.

KPMG International, CREATE-Research, AIMA and CAIA Association examine in detail sustainable investing and its impact on the alternative investment industry. Our research is based on electronic surveys and structured interviews of 135 institutional investors, hedge fund managers, long only managers and pension consultants in 13 countries in all the key regions. 

Sustainable investing - Fast-forwarding its evolution report highlights the lessons learned, so that others can benefit from them exploring three issues:

  • What is the current state of progress in implementing sustainable investing?
  • Why is the pace of progress being held back by various barriers?
  • How are these barriers being tackled on the ground by evolving best practice?

How can we help?

Tomas Otterström
KPMG Global Leader, Sustainable Finance Services
+358 40 584 7070

Riikka Sievänen
Advisory Senior Manager, PhD
Responsible Investment and Sustainability Services
+358 40 679 2632